WASHINGTON — The Federal Reserve signaled Wednesday that it stands ready to use new unconventional tools, or expand existing ones, to spur lending and consumer spending that could help lift the economy out of a painful recession.
The Fed also agreed to keep the targeted range for the federal funds rate between zero and 0.25 percent for “some time” to help brace the economy.
Economists predict the Fed will keep the funds rate, the interest banks charge one another on overnight loans, at that record-low level through the rest of this year.
With its key lending rate to banks already near zero, the Fed pledged anew to use “all available tools” to revive the economy.
Specifically, the Fed said it is “prepared” to buy longer-term Treasury securities if the circumstances warrant.
At its meeting in December, the Fed said it was merely evaluating that option.
